Departures from Climate Action 100+ by US firms continued on Friday with exits by Goldman Sachs Asset Management (GSAM) and one of the country’s largest investment consultancies.
Reuters reported on Friday that GSAM had left the collaborative engagement initiative. Responsible Investor can reveal that New York-based investment consultant Segal Marco Advisors exited the same day.
On 30 July, the Republican-led House Judiciary Committee sent a letter to more than 130 investor members of CA100+ based in the US requesting details of their involvement with the initiative, including how they would engage with carbon-intensive firms on implementing transition plans and the “tactics” that will be implemented.
The committee also asked investors to preserve all documents and communications relating to their involvement in CA100+ and broader “efforts to advance ESG goals”.
Last week, RI exclusively revealed that Mellon Investments, TCW Group and two affiliates of investment firm Aristotle left the group after the letter was sent. They were joined by smaller managers Vert Asset Management and Water Asset Management.
RI can also reveal that $8.5 billion investor CoreCommodity Management left the initiative on Thursday last week.
A spokesperson for GSAM told RI: “We’ve made investments in our ability to meet the sustainable investing needs of our clients and remain committed to leveraging our global capabilities.”
Segal Marco Advisors, which has combined advisory assets exceeding $500 billion, had not responded to RI’s request for comment at the time of publication.
According to CA100+’s website, the firm was among the lead investors for AES Corp and Southern Company.
It is relatively uncommon for investment consultancies to be part of Climate Action 100+. While industry giant Mercer is a member, some of the biggest UK and US consultancies are absent, including Willis Towers Watson, NEPC and Redington.
Responding to the latest exits, a spokesperson for CA100+ said: “The bottom line is that climate risk is a financial risk and must be factored into investment decisions. The ongoing politicisation of the initiative is regrettable. Climate Action 100+ will continue to support investors globally as they act on climate-related financial risks and opportunities.”
The spokesperson added that CA100+ welcomes Goldman Sachs’ continued commitment to maintain its sustainable investing work through its global capabilities and “looks forward to seeing the ongoing impact of this”.
